Waterstone Financial (WSBF) AI Stock Analysis

• Market Cap: $280.00M
• Dividend Yield: 4%
• Average Volume (3M): 47.84K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.78
• Revenue Growth: 1.46%
• EPS Growth: 80.94%
• Country: US
• Employees: 600
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 18,679,165
• 10 Day Avg. Volume: 44,731
• 30 Day Avg. Volume: 47,844
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.33
• Enterprise Value/Revenue: 3.32
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 25.23
• 1Y Price Target: $14.50
• Price Target Upside: -3.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $14.50 ▼(-3.27% Downside)

Waterstone Financial's overall stock score is driven by a solid financial performance and attractive valuation, despite mixed technical indicators. The company's high leverage and low equity ratio are notable risks, but strong cash flow management and a good dividend yield provide a buffer. The recent board changes are positive but do not significantly impact the score.

Waterstone Financial Business Overview & Revenue Model

Company Description

Waterstone Financial (WSBF) is a financial services holding company based in the United States, primarily engaged in the business of banking through its subsidiary, WaterStone Bank. The company operates in the financial services sector, offering a variety of products and services including residential and commercial mortgage lending, deposit accounts, and financial advisory services. Waterstone Financial focuses on delivering tailored financial solutions to individuals and businesses, emphasizing community engagement and customer service.

How the Company Makes Money

Waterstone Financial generates revenue through multiple key streams, primarily from interest income on loans, which includes residential and commercial mortgages. The company earns this income by lending money at a higher interest rate than it pays on deposits. Additionally, Waterstone Bank's deposit accounts contribute to the revenue through service fees and account maintenance charges. The bank also generates non-interest income through various financial services, including investment advisory fees and other transactional services. Significant partnerships with local businesses and real estate agents enhance the company's loan origination capabilities, further contributing to its overall earnings.

Waterstone Financial Financial Statement Overview

Summary

Waterstone Financial shows mixed financial performance with strong profitability margins and cash flow management, but high leverage and low equity ratio present risks. Revenue growth challenges need addressing for sustained growth.

Income Statement

Waterstone Financial's income statement shows a mixed performance. The TTM gross profit margin is strong at 66.55%, indicating efficient cost management. However, the net profit margin is modest at 9.52%, suggesting some pressure on bottom-line profitability. Revenue growth over the past year is slightly negative, indicating challenges in top-line expansion. The EBIT and EBITDA margins are reasonable at 11.78% and 13.16% respectively, reflecting stable operational efficiency.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio is 1.16, indicating a relatively high level of leverage, which could pose a risk if earnings decline. The return on equity (ROE) is relatively low at 5.47%, implying limited efficiency in generating returns on equity capital. The equity ratio stands at 15.69%, showing a low proportion of equity financing compared to total assets, which could impact financial stability.

Cash Flow

Waterstone Financial's cash flow statement reveals strong free cash flow generation with a positive growth rate of 78.38% over the past year. The operating cash flow to net income ratio is robust at 4.53, indicating strong cash conversion from earnings. The free cash flow to net income ratio is exceptionally high at 4.48, showcasing effective cash management and potential for reinvestment or debt reduction.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.38M	176.97M	171.06M	268.47M	317.86M
Gross Profit	132.55M	127.32M	156.80M	258.09M	286.53M
EBITDA	26.48M	14.33M	28.51M	98.16M	113.72M
Net Income	18.69M	9.38M	19.49M	70.79M	81.14M
Balance Sheet
Total Assets	2.21B	2.21B	2.03B	2.22B	2.18B
Cash, Cash Equivalents and Short-Term Investments	191.24M	235.84M	232.55M	541.76M	235.54M
Total Debt	446.52M	466.05M	386.78M	477.13M	508.07M
Total Liabilities	1.87B	1.87B	1.66B	1.78B	1.77B
Stockholders Equity	339.13M	344.06M	370.49M	432.77M	413.12M
Cash Flow
Free Cash Flow	46.96M	-28.28M	205.96M	141.23M	-94.81M
Operating Cash Flow	48.06M	-27.58M	206.66M	142.01M	-93.58M
Investing Cash Flow	-23.96M	-159.22M	-335.74M	160.06M	37.19M
Financing Cash Flow	-20.76M	176.58M	-201.00M	-20.12M	76.86M

Waterstone Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSBF, the sentiment is Positive. The current price of 14.99 is above the 20-day moving average (MA) of 14.14, above the 50-day MA of 13.83, and above the 200-day MA of 13.39, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 71.37 is Negative, neither overbought nor oversold. The STOCH value of 64.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WSBF.

Waterstone Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLBC	77 Outperform	$301.44M	8.94	16.24%	2.70%	6.48%	1.42%
TSBK	77 Outperform	$264.16M	9.85	10.87%	3.05%	9.16%	12.12%
LNKB	74 Outperform	$272.63M	7.24	13.14%	4.12%	39.91%	―
BWFG	74 Outperform	$332.89M	16.39	7.29%	1.89%	0.75%	-12.45%
FDBC	73 Outperform	$251.74M	10.65	11.47%	3.67%	19.27%	49.15%
Sector *	68 Neutral	$17.90B	11.86	10.29%	3.72%	9.74%	1.66%
WSBF	64 Neutral	$280.00M	13.21	6.12%	4.00%	1.46%	80.94%

Waterstone Financial Corporate Events

Waterstone Financial Elects New Board Members

On July 8, 2025, Waterstone Financial, Inc. announced the election of Molly Mulroy and Laura Piotrowski to its Board of Directors, as well as to the board of its subsidiary, WaterStone Bank SSB. This strategic move is expected to enhance the company’s leadership with their extensive experience and commitment to delivering value to stakeholders. Mulroy, with a background in energy and administrative services, and Piotrowski, with expertise in strategic advisory and finance, are anticipated to contribute significantly to Waterstone’s mission and community-focused initiatives.